KUALA LUMPUR: The cross-border payments landscape in Asean is evolving rapidly, with member countries integrating their individual networks to enable seamless transactions in most parts of the region.
Thanks to interconnected networks, Malaysian payment methods can now be used in some Asean countries and vice versa. This trend is transforming cross-border payments by eliminating the need for physical currency exchange.
A key example is the Malaysia-Thailand corridor, where merchants in both countries can accept payment methods such as Touch ‘n Go and Thailand’s PromptPay, enhancing convenience to customers.
Fiuu CEO Eng Sheng Guan said, however, not all Asean countries are integrated. He noted that countries such as Vietnam, Cambodia and Myanmar have yet to establish such payment networks.
“Despite this, ongoing efforts by countries such as Malaysia, Indonesia, Thailand, Singapore and the Philippines are reshaping the payments landscape and fostering greater regional connectivity and efficiency, he told SunBiz.
Fiuu is a digital payment service provider that helps merchants unlock more than 110 major methods across Southeast Asia while enabling businesses to accept local and cross-border transactions in the region.
Fiuu also has an established instalment payment solution, connecting businesses with seven banks, namely HSBC Bank, Standard Chartered Bank, Hong Leong Bank, RHB Bank, AmBank, Affin Bank and OCBC Bank. It provides a single platform that simplifies the payment setup and removes the need to approach multiple banks.
Moving on, Eng said more payment corridors have been established in recent years. He added that Malaysia and Singapore have been interconnected for over two years, while Indonesia-Singapore and other corridors, such as Malaysia-Philippines and Singapore-Thailand, are also emerging.
These integrations are uniting previously fragmented payment systems by linking banks and networks under one framework, streamlining cross-border transactions across Asean, Eng said.
Asked about the growing trend of using cryptocurrencies as a mode of payment, Eng said acceptance of crypto as a payment method remains sensitive and highly regulated.
“Fiuu currently supports cryptocurrency payments only in Singapore, where the Monetary Authority of Singapore (MAS) provides clear regulatory guidelines. For other Asean countries, regulations vary, and many lack a defined framework for merchant acceptance of cryptocurrencies or converting crypto to fiat currency.
“Fiuu facilitates crypto payments for merchants through its Singapore entity, which is licensed and compliant with MAS regulations. Merchants outside of Singapore who wish to accept crypto must register with Fiuu’s Singapore entity to ensure compliance.
“While Singapore leads in crypto regulation within the region, most other Asean countries primarily focus on regulating crypto exchanges rather than merchant transactions. This lack of a clear regulatory pathway limits the expansion of crypto payment solutions beyond Singapore for now,” Eng said.
Fiuu operates across key Asean countries, excluding Vietnam, connecting to each country’s in-country payment networks. Through Fiuu’s application programming interface, merchants gain access to a unified platform, enabling them to open payment channels across the region seamlessly.
Unlike credit card systems that require local company registration, Fiuu simplifies the process for alternative payment methods. Merchants only need to sign up with Fiuu in one Asean country to access payment methods across the entire region.
Fiuu’s focus is entirely business-to-business, serving merchants by linking them to multiple payment channels. However, customers can simply use the payment options offered by merchants connected to Fiuu. This approach ensures streamlined operations for businesses looking to expand within Asean without the complexities of managing individual country registrations or fragmented payment systems.
Eng highlighted that major e-commerce platforms such as Shopee, Lazada and TikTok Shop are among Fiuu’s key merchants, reflecting evolving consumer behaviour in the Asean market.
A notable trend, he said, is the shift towards smaller ticket sizes – whereby average purchases have decreased to about 60 from 80 – indicating consumers now shop more frequently but in smaller quantities.
“This behaviour is driven by the efficiency of modern logistics, which ensures faster deliveries, often within one or two days, and the availability of free shipping. As a result, transaction volumes have been growing annually by about 30%, boosting the adoption of e-payments across the region.
“Retail, online shopping, and travel sectors are thriving, with travel experiencing a significant post-pandemic boom. These trends highlight the dynamic growth opportunities in e-commerce and related industries in Asean,“ said Eng.
Source: The Sun Daily
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